| | |
Homepage | login or create an account

Term deposits are most popular investment choice, survey

Read More:
Fuseworks Media
Fuseworks Media

Only 6 percent of investors think shares offer the best rate of return, while rental property is still a popular investment class, according to a survey by ASB.

The survey found that investor confidence is improving, term deposits remain the most popular investment vehicle and KiwiSaver is more popular than ever before.

During the three months to December 31, the number of investors expecting their returns to improve climbed a net 4 percent to 19 percent.

Term deposits are back at a level of popularity last achieved in the third quarter of 2008

They are the most popular investment class, with 21 percent of investors believing they offer the best rate of return, an increase of 1 percent on the previous quarter.

Rental property remained in second spot with 14 percent of investors favouring the asset class. Bank savings accounts dropped 2 points to 12 percent, followed by KiwiSaver at 11 percent, managed funds on 9 percent and shares at 6 percent.

"The results show that old habits die hard when it comes to rental property," said Jonathan Beale, ASB's head of private banking and wealth management.

"Even though rentals slipped steadily in popularity following the giddy heights reached before the recession, rental property remains a firm second when it comes to views on best investment returns."

The survey comes at a time when the Government is considering its response to a Savings Working Group report recommending a range of measures to encourage saving.

Also, the Government is proposing to partially privatise four energy companies and reduce its stake in Air New Zealand.

It is hoped that the listing of stable large energy companies will help develop the sharemarket. But Treasury has said that the gains for NZX from privatisations will be modest.

Featured Books on KiwiSaver & Saving

Credit Card Comparison TablesCompare Credit Cards - Independent interest rate and fees comparisons for New Zealand banks.

About : money

Find the latest money news and 'how to' guides on Guide2Money.

Ask our researchers your personal finance questions.

Your Questions. Independent Answers.